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When a homeowner dies, the home changes hands. It could pass to a surviving spouse or child whose name is on the deed, or be bequeathed to the family as part of the homeowner’s estate. Often, the family wants to sell the home. 

If you are working with an estate to sell property, keep these things in mind:

Talk to the Executor

The deceased homeowner’s will should have named an executor. Only that person can make financial decisions for the estate, including setting the asking price.

If No Will...

If the homeowner died without a will, the estate may go to probate court. The purpose of court involvement is to protect the rights of the family, those entitled to receive property, and the creditors of the deceased person’s estate, according to the Texas Bar Association. State law governs who inherits what if the estate has no will.

Bills to Pay?

The estate is required to pay outstanding debts. The executor must make sure the estate has enough money to cover them. Texas is one of nine community property states, meaning relatives may be required to pay off the deceased person’s debt. Make sure there is nothing preventing the sale of the property.

Be Sensitive

The family has lost an important person. It is stressful to handle paperwork and make decisions while mourning. Be understanding and sympathetic.

SAN ANTONIO, Texas (KSAT.com) -- City of San Antonio voters on Saturday passed the city’s largest-ever bond program, including a first-of-its-kind affordable housing portion.  

Mayor Ron Nirenberg declared victory before 10 p.m. for the six propositions making up the $1.2 billion bond package. At that point, each of the propositions, A through F, had between 59.9% and 72.4% approval.  

The bond program does not include a tax increase.  

“The statement tonight is San Antonians believe in each other,” Nirenberg told a crowd at a watch party for the Taking Care of SA campaign, which supported the bonds. “We rally around each other. We know we’ve been through a very difficult time, but we are not satisfied with the status quo. We’re working to make our city better, stronger, more equitable and resilient than ever before, and that’s what this vote represents.”

The bond includes:  

✅ Streets, bridges, and sidewalks - $471.6M 

✅ Parks and recreation - $271.9M 

✅ Drainage and flood control - $169.9M 

✅ Affordable housing - $150M 

✅ Public Safety Facilities - $78.3M 

✅ Library and Cultural Facilities - $58.4M 

The housing bond, Proposition F, garnered the least support, while the propositions for streets and drainage, A and B respectively, topped the list.  

Nirenberg attributed the range of support to familiarity. This is the city’s first bond to include affordable housing after voters approved a charter change in May 2021 to allow for it.  

“So there’s a lot of work left to do in informing and making sure people are aware of the housing proposals and the work that we’re doing in housing,” he told reporters. “But I think, again, the numbers across the board, Propositions A through F, were all strongly supported. And that statement, as a whole, is a strong faith in the future of San Antonio and faith in each other as San Antonians.”  

Some of the highlights include:

$103.5M for expanding the greenway trail system by another 21 miles 

$15.7M for public art -- 1.5 percent of the whole bond (except housing) 

$44M for two replacement fire stations (D1 and D5) and one new police substation (D3) 

$100.5M to reconstruct failed streets around the city Improvements to 30% of the city’s parks, including 9 new park properties 

$150M for affordable housing - the housing portion of the bond does not include individual projects, but rather broad categories for using the funding, with a focus on helping lower-income households.

AUSTIN, Texas (Nexstar) — Texans voted for property tax relief, passing two different constitutional amendments in the May election. 

Proposition 1 and 2 will pass with a wide majority of the vote.  Proposition 1 on Texas’ May election ballot sets out to give disabled and senior individuals a tax break by paying less to public schools.  It would lower their school property tax bills year after year. 

Both of the constitutional amendments garnered unanimous bipartisan support from Texas lawmakers, who say the propositions will help relieve the high property taxes Texans are experiencing as the housing market continues to boom.

Proposition 1 

Proposition 1 would freeze the frozen school property tax bills for the elderly and Texans with disabilities starting in 2023. It would also lower their school property tax bills year after year.  

In the 2019 session, lawmakers passed school funding legislation that could conceivably push the tax rate below the level it was when a homeowner had their taxes frozen.  Prop. 1 aims to change the state’s constitution to allow the rates to drop for those homeowners, if those rates drop below the levels where they were frozen. The proposition does not allow for rates to increase beyond where they’re already frozen.  

The ballot language in this proposition has caused some concern, as it is not easily understood in the way it is written on the ballot.  

Here’s how it reads:  “Proposing a constitutional amendment authorizing the legislature to provide for the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed for general elementary and secondary public school purposes on the residence homestead of a person who is elderly or disabled to reflect any statutory reduction from the preceding tax year in the maximum compressed rate of the maintenance and operations taxes imposed for those purposes on the homestead.”

Dale Cramer, president of the Texas Taxpayers and Research Association, said Texans should think of Prop. 1 as a way of extending additional tax relief to senior citizens and those with disabilities.  

Property taxes for school purposes in Texas are frozen at their current rate once someone turns 65. However, last legislative session, lawmakers passed a bill that forces school tax rates down.  

“If your school taxes were capped say, 10 years ago, when your value was much less, you’re not getting any benefit from those rates declining because your values are far beyond where they were when the cap was set,” Cramer said. 

“What Proposition 1 does is…whatever your capped amount, no matter when that occurred, as school tax rates come down, it will bring down your cap amount as well.”  

Proposition 2 

Proposition 2 would increase the homestead exemption Texans can take on their school district property taxes from $25,000 to $40,000. That would begin Jan. 1, 2022.  

Sen. Paul Bettencourt, R-Houston, authored both of the proposed constitutional amendments and said Proposition 2 will provide long-term relief to property owners in Texas.  

“The homes that qualify get an extra $15,000 exemption, which translates to about $175 per year savings for the lifetime that they — that anybody has a home. And that’s thousands of dollars of savings over the life of a homeowner in Texas,” he said.  

Actual savings would depend on local tax rates.  

Cramer said if these constitutional amendments are approved by voters, it will not significantly impact the budgets of Texas’ public schools.  

“Under the school finance formulas, school districts are guaranteed a fixed dollar amount per student. The only thing that changes is how much of that is paid with property tax and how much of that is paid with state aid,” he said.

A deed is a legal document used to transfer ownership of property from one party to another. There are different types of deeds, and each serves a specific legal purpose depending on the known and unknown history of the property, the existence of a lien, and/or other encumbrance like a mortgage. 

The six most common types of deeds are: 

1. Quitclaim Deed 
2. Deed of Trust 
3. Warranty Deed 
4. Grant Deed 
5. Bargain and Sale Deed 
6. Mortgage Deed  

This list of deeds explains the specifics of each individual deed type and when to use them: 

1. Quitclaim Deed 

A quitclaim deed is used to transfer property between familiar parties, such as family members or even divorced spouses. That’s because unlike other types of deeds, a quitclaim deed offers little legal protection to the grantee (the recipient of the transfer). 

For example, if the grantor turns out not to legally own the property outlined in the deed, the grantee can’t take legal action. In addition, there are no legal protections against liens or other encumbrances that might exist on the property. Quitclaim deeds involve a high degree of trust as a result, and are preferred by people who know each other well. 

This type of deed can also be used if the grantor isn’t entirely sure of the title’s status, and whether or not it has any defects. 

2. Deed of Trust 

A deed of trust transfers the title of an asset from a trustor to the trustee for the benefit of a third party, known as the beneficiary. 

Most often, a deed of trust is used instead of a mortgage, acting as security against a loan that a trustor has transferred to a trustee. Essentially, the trustee holds the property until the borrower has paid off the debt, agreeing to sell the property in the event that the borrower defaults on their loan. 

The trustee retains possession of the legal title to the property (which entails legal and financial responsibility), while the borrower keeps the equitable title, meaning they are legally able to enjoy or use the property. 

3. Warranty Deed 

Different types of warranty deeds are used to offer various legal protections to the grantor, in the event there’s a problem or defect with the title once it’s been transferred. 

Warranty deeds come with different levels of protection, and are split into two distinct categories: 

General Warranty Deed 

Typically used in residential real estate transactions, a general warranty deed guarantees that the seller has the full legal right to sell the property, and that the property is completely free and clear of debts, liens, or other encumbrances. 

This type of deed comes with the most significant protection for the grantee, and provides them legal recourse in the event an unsettled debt or issue with the deed arises. 

Special Warranty Deed 

A special warranty deed protects a grantee against any issues or claims that might have arisen during the time the grantor owned the property entirely. It doesn’t apply to the entire history of the property, as the property’s whole history isn’t likely known by the current owner. 

Most often, this type of deed is used in the sale of residential real estate, or for commercial property. While not providing as much legal protection as a general warranty deed, it does: 

• Assure that the grantor is the legal owner of the property title, and 

• Guarantee that the property was not somehow encumbered during the time when the grantor had ownership. 

4. Grant Deed 

A grant deed is a specific deed type that transfers the interest in a property from the seller to the buyer in exchange for a previously agreed upon price. 

While the grant deed guarantees that the seller owns the property entirely, it doesn’t offer the buyer legal protection against any title defects such as an: 

• error in public records 
• improper signature 
• undisclosed lien 
• boundary dispute 

5. Bargain and Sale Deed 

This type of real estate deed is used in the sale or transfer of residential real estate; however, it offers no guarantee that the property is free of debts or liens. It only states that the grantor is the title-holder, and little else. 

As with a quitclaim deed, the grantee would acquire any lien in place against the property along with the title. 

6. Mortgage Deed 

A mortgage deed is a document signed between a homeowner and a bank or lending institution, allowing said institution to put a lien on the property if the loan isn’t repaid. This deed secures property as collateral for a loan — meaning a “mortgage payment” is paid towards a loan debt, with the house serving as security in the event of a default. 

When a mortgage deed is in effect, the legal title to the property is held by the financial institution for the duration of the loan repayment period. 

The various types of real estate deeds all serve different functions, and offer differing levels of protection during the transfer of a property or piece of land. Knowing the difference between deeds can help you understand which level of protection is necessary for your real estate transaction. 

Now that you understand the various types of deeds, be sure you understand the difference between a title and deed before you consider transferring your property.  

Congressional  leaders released a long-awaited framework Thursday for President Joe  Biden’s signature Build Back Better plan, proposing a top-line price tag  and an outline of new social programs.

The $1.75 trillion  framework includes hard-fought NAR priorities like investments in  affordable housing and down-payment assistance and spares real estate  investment from the most feared taxes.

President Biden announced the proposal at the White House after a morning meeting at the Capitol.

“NAR’s  advocacy operation is built for crossroads moments like this one. For  the past year, we have educated lawmakers on the effects of misguided  and harmful taxes on real estate and the need for affordable housing  investment,” says Shannon McGahn, chief advocacy officer at NAR.  

The  framework agreement is also the key to unlocking a vote in the House on  a $1.2 trillion bipartisan “hard” infrastructure bill, which has  already passed the Senate. Progressives want a deal on the social  spending plan before voting on the bipartisan bill that funds  traditional infrastructure championed by NAR like roads, bridges,  broadband, and the power grid. 

House Speaker Nancy Pelosi signaled she may bring the bipartisan infrastructure bill to a vote as soon as today. 

“Support  for this framework and the bipartisan bill’s passage is far from  certain, but this announcement shows increased momentum for the effort  to get the bill to the president’s desk,” McGahn says.

Historic Investment in Affordable Housing

The  framework includes a $150 billion investment in affordable housing, a  key NAR priority and focus of its advocacy efforts for the past year.

Under  the agreement, public housing and rental assistance would get funding  boosts.  The plan would also create more than one million new affordable  rental and single-family homes and invest in down-payment assistance.

The  White House says the down-payment assistance under the plan would allow  “hundreds of thousands of first-generation homebuyers to purchase their  first home and build wealth.” 

As  negotiations continued in recent weeks, media reports suggested that  housing provisions might be cut from the bill altogether.

In  response, last week, NAR CEO Bob Goldberg joined other housing leaders  and key members of Congress near the Senate steps for a press conference  calling for the inclusion of affordable housing provisions in the final  bill.

 “As  a nation, we have to find ways to close the supply shortfall,” Goldberg  said at the press conference. “Doing so will be particularly meaningful  for lower-income households, millennials, and households of color.”

“We continued to press both publicly and privately for these provisions,” McGahn says. “Affordable  housing is the key to unlocking prosperity for millions of Americans  currently excluded from the American Dream. This investment is critical  for closing the racial homeownership gap and addressing income  disparity. It opens up homeownership for first-generation and first-time  buyers.”

The framework agreement includes funding for the following programs within the housing section:
 

· Public housing

· Housing Trust Fund

· HOME

· Down-payment assistance 

· Housing vouchers 

· Minority Business Development Agency

Tax Provisions Spare Real Estate Investments

The  plan is paid for with new taxes on high-income individuals and  businesses, but the most feared taxes on real estate investment were  excluded.

“Some  of the earlier tax proposals floated would have devastated the real  estate sector, which makes up nearly one-fifth of the entire economy,”  McGahn says.  “This framework has no 1031 like-kind exchange limits, no  capital gains tax increases, no change in step-up in basis, no tax on  unrealized capital gains, no increased estate tax, no carried-interest  provisions, and no 199A limits.  The tax provision of this framework is  very positive for consumers, property owners, and the real estate  economy.” 

“We  worked for more than a year to educate lawmakers on these issues and  launched a targeted Call For Action on taxes. The tax provision of this  framework is testament to the effectiveness of our education campaign in  Washington,” McGahn continues.  

The  plan does not mention State and Local Tax (SALT) deduction  relief. However, congressional leaders still support an increase in the  SALT cap, and a group of bipartisan House members is still demanding a  solution.  

“Congressional  leadership can address SALT through an amendment once a bill is under  formal debate,” McGahn says.  “We won’t let down our guard on SALT and  are still hopeful for a solution.”

 Judy Jones listed a property with solar panels in Kennadale for a seller who had to move out of state due to a catastrophic accident. The broker-associate from Southlake was trying to put together all the necessary information on behalf of her client and was having trouble getting a response from the solar panel company.

“I lost the first buyer because the solar company didn’t respond to my requests for three weeks,” she says. “Another contract came in on the property. The title company contacted the solar panel company several times to get the paperwork for closing. It took two weeks to get a response, and the solar company said that the buyer would need to assume the lease on the panels—there were 16 years remaining on the original 20-year lease—and they wanted me to sell the lease to the buyer!”

The second buyer wasn’t able to qualify for a mortgage loan once the lender factored in the 16-year lease as a lien on the property.

Jones’s experience isn’t unique. Most owners don’t know or don’t remember what is in the paperwork they signed with the solar panel company.

How the Texas Real Estate Commission contract forms handle the sale of a property with solar panels depends on whether the panels are paid off, financed, or leased.

PAID OFF PANELS

If the solar panels are fully paid off, they are treated the same as any other fixture in Paragraph 2 of the TREC contracts.

FINANCED PANELS

If the panels were financed, the solar panel company has likely placed a lien on the property. Paragraph 9B(4) of the TREC contracts make it clear that all existing liens must either be satisfied by the seller at closing or assumed by the buyer. The solar panel company might also have its own requirements that must be satisfied if the home and panels are sold.

Encourage your sellers early in the process to review the contract they signed and contact the solar panel company—preferably before the property is listed. Sellers and listing agents would need to calculate the cost of satisfying the solar panel lien in their estimate of proceeds. If the lien is going to be assumed by the buyers, the parties need to seek help from a private attorney. The buyers should also speak with their lender, since assuming the lien could cause issues with obtaining third-party financing.

LEASED PANELS

If the panels are leased, the Addendum Regarding Fixture Leases (TXR 1954, TREC 52-0) must be used. This form allows the buyers and sellers to negotiate whether the lease will be assumed and whether the panels will remain on the property. Additionally, the form requires sellers to deliver copies of the solar lease to the buyers, allows the buyers to terminate the contract if the sellers fail to timely deliver copies of the lease, and reiterates that all liens must be satisfied at closing or assumed by the buyers.

Again, the solar company may have additional requirements that the buyers must satisfy before the lease can be assumed, and the assumption of the lease could cause issues with the buyers obtaining third-party financing. The buyers would need to consult with a private attorney and their lender to address any issues that arise relating to the solar lease.

 Here's a little refresher on Stage 1 Watering Rules:

1. Landscape  watering with an irrigation system, sprinkler, or soaker hose is  permitted only on your designated day before 11 a.m. or after 7 p.m.  Watering days begin and end at midnight. Overnight and weekend watering  is not allowed.
2. Hand watering with a hose or a bucket is allowed any day, any time.
3. Washing impervious cover (i.e., parking lots, driveways, streets, etc.) is prohibited.
4. Water  waste is prohibited at all times. Allowing water to run off into a  gutter, ditch, drain, or failing to repair a controllable leak is  considered water waste.
5. Residential car washing is allowed on Saturday or Sunday as long as there is no water waste.
6. Residential  and indoor commercial fountains are permitted. Outdoor commercial  fountains must have a variance in order to operate.
7. Variances will be needed for new landscape installations.

Note: These restrictions will continue until there is an announcement in the newspaper that Stage 2 or year-round rules are in effect. For watering recommendations and other timely tips, visit GardenStyleSA and you can contact SAWS for a free irrigation system consultation. If you have questions, contact the SAWS Conservation Department at (210)704-SAVE (7283).

9/3/2021

 The  87th session of the Texas Legislature is underway at the Texas Capitol,  and Texas REALTORS® is advocating for several bills that support anti-discrimination efforts.

Removing Discriminatory Covenants in Real Estate Deeds

Some  communities in Texas have language in their real estate deeds from  years ago that is discriminatory and unconstitutional. While this  language is not enforceable, Texas REALTORS® respects the interests of  property owners who wish to remove the covenants from their real estate  deeds. However, the process to remove that language is burdensome and  complicated under current law.

Texas  REALTORS® supports Senate Bill 30, authored by Sen. Royce West, which  would allow property owners to go through the county clerk’s office to  remove discriminatory covenants from their real estate deeds. The Texas  Legislature has been advancing this bill with great support. Last week,  the Senate unanimously passed SB 30 after unanimous approval from the  Senate State Affairs Committee. As of April 6, the bill has been moved  on to the Texas House of Representatives.

In  addition, Texas REALTORS® supports legislation that makes it easier to  remove discriminatory covenants from HOA documents, such as House Bill  1202 by Rep. Jacey Jetton, which is scheduled to be heard in the House  Committee on Business and Industry.

Expanding Protected Classes in Fair Housing Laws

Texas  REALTORS® supports legislation that seeks to expand fair housing laws  in Texas to include sexual orientation and gender identity among the  protected classes. The current protected classes are race, color,  religion, sex, familial status, or national origin. In February 2021,  the U.S. Department of Housing and Urban Development announced the inclusion of sexual orientation and gender identity among the  protected classes at the federal level. The passage of this legislation  would put state fair housing laws in line with federal fair housing  laws.